Bitcoin (BTC) has slipped under the $30,000 level in early European hours on Wednesday, with overall market capitalization falling 1.2% in the past 24 hours. Ether (ETH) traded just over $1,860, down 3%, leading the drop among major tokens. Ether dipped ahead of the Ethereum network’s major upgrade taking place later today at 22:27 UTC (6:27 p.m. ET).
Exchanges liquidated just over $30 million worth of leveraged futures bets during Wednesday’s price drop, of which, more than 90% were longs or bullish bets. In addition to the Ethereum network upgrade, traders were likely also taking profits ahead of the U.S. consumer price index (CPI) report for March, which is due at 8:30 a.m. ET.
A report by blockchain analytics firm Glassnode estimates at least $300 million worth of selling pressure after the Shanghai upgrade today. “We estimate a total of 170K ETH intended to be sold after the upgrade,” Glassnode said in a report. “We project that only 100K ETH ($190M) of the total accumulated rewards will be withdrawn and sold.” Glassnode said the estimate was made based on a “50% withdrawal credential update, our segmentation of depositors, and assumptions regarding investor conviction, and profitability” by using wallet behavior, period of staking and presence of liquid staking derivative products, such as Lido.
Binance.US has delisted Tron’s TRX token. This comes weeks after the U.S. Securities and Exchange Commission sued Tron’s Justin Sun over allegations of selling and airdropping unregistered securities, fraud and market manipulation involving the TRX token. TRX dropped 6.4% on the news, according to CoinDesk market data. Binance.US says trading for TRX will end on April 18.
The crypto market valuation surpassed the $1.2 trillion mark on Tuesday, ending weeks of consolidation and hitting the highest since June. The move higher is reminiscent of the bull revival seen four years ago. “The April-May 2019 framework is playing right on cue with the crypto finally breaking the $1.15T on the global MCAP index after 26 days of battle,” Decentral Park Capital’s portfolio manager Lewis Harland said. “This break could echo the April-May 2019 period when crypto tried to break above the $180B mark for 35 days before gaining 100% 49 days afterward (red),” Harland added.
It is worth noting that Tron’s delisting by Binance.US has been the latest in a string of regulatory actions against cryptocurrencies. The SEC has been cracking down on unregistered securities offerings, and the IRS has been targeting cryptocurrency holders who fail to report their holdings on their tax returns. These actions have led to increased scrutiny of the industry and have raised concerns among investors about the future of cryptocurrencies.
Despite the challenges facing the industry, many experts remain optimistic about the future of cryptocurrencies. They believe that the technology has the potential to revolutionize the financial industry and that it will continue to gain acceptance as more people become familiar with it. As the industry continues to evolve, it is likely that we will see more regulatory actions, but it is also likely that cryptocurrencies will continue to grow in popularity and become an increasingly important part of the financial landscape.
In conclusion, the crypto market has experienced some volatility in recent weeks, with Bitcoin and Ether leading the drop among major tokens. The delisting of Tron’s TRX token by Binance.US is the latest in a string of regulatory actions against cryptocurrencies, but many experts remain optimistic about the industry’s future. As the industry continues to evolve, it is likely that we will see more regulatory actions, but it is also likely that cryptocurrencies will continue to grow in popularity and become an increasingly important part of the financial landscape.
